Judge Calls For Probe In Fight For Drug Company

ON THE RECORD - NATIONAL

November 30, 1993

NEW YORK — A federal judge has stopped a proxy fight launched by Beverly Hills stockbroker Rafi Khan to take control of ICN Pharmaceuticals Inc. and has asked federal prosecutors to investigate whether he may have lied under oath. The judge made his ruling after witnesses testified earlier this month that Khan was involved in a stock fraud against the British government. They testified that he illegally made multiple applications for shares of British Gas PLC during the company's privatization efforts in 1986. The government had restricted the number of shares individuals could buy. Khan denied the allegations during the court proceedings, but Judge Sprizzo said he found his testimony difficult to believe and wanted prosecutors to investigate whether the stockbroker was lying. Khan can appeal the judge's ruling. ICN, based in Costa Mesa, Calif., is headed by former Yugoslav prime minister Milan Panic.